March 8, 2018

Comprehensive Infrastructure Study Released by Brazilian Gov.

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

One of the biggest obstacles for Brazilian farmers and ranchers is the lack of an efficient transportation systems in order to get their products to domestic markets and export facilities. In order to address these issues in a comprehensive manner, the Brazilian Minister of Agriculture in conjunction with Embrapa (the Brazilian Agricultural Research Service) unveiled yesterday a macro-logistical system called the "Intelligent Strategic System for Macro-Logistics for Agriculture and Livestock."

The online platform can be found at: https://www.embrapa.br/macrologistica

The study examines production, transportation pathways, modes of transportation, export amounts, export locations, the basic logistics all along the way, where are the bottlenecks, and the national priorities for infrastructure improvements. In addition to the production and movement of agricultural products, the study looks at movement of fertilizers, chemicals, machinery and thousands of grain storage facilities in the country.

This is by far the most comprehensive look at Brazilian agricultural production and logistics that I have ever seen. The system provides data concerning production, storage, transportation, exports, and investment opportunities for infrastructure development. The study was conducted by Embrapa and it goes back 17 years to examine how the agricultural production in Brazil has changed over time and where the greatest need is for infrastructure improvement.

The study looks at the following crops and products: soybeans, corn, cotton, coffee, sugar, oranges, lumber and paper products, beef, pork, and poultry. They have data and dozens of maps for each crop indicating where it is produced, how it is transported, the modes of transportation, how much of the product is exported, and from which port. They have all the various modes of transportation for each crop and for each region of the country. They even break it down to micro regions of individual states.

They provide statistics for highways, for railroads, for every port in Brazil, and for waterways. The data in this study will be used by the various Brazilian Ministers and the President of Brazil to establish priorities for investments in logistics. In fact, Embrapa has already identified the top 10 priorities for nationwide infrastructure improvements.

In making the announcement, the Brazilian Minister of Agriculture emphasized how important agriculture is for the country. He indicated that the agricultural sector accounted for 70% of the growth of the Brazilian economy in 2017. The Brazilian GDP increased 1% in 2017 led by a 13% increase in the agricultural GDP. For anyone interested in Brazilian infrastructure, this is a must read.